THE Australian dollar is higher due to strong economic data out of China and easing concerns about a possible US military strike on Syria.

At 12pm AEST today, the local unit was trading at 92.93 US cents, up from 92.50 cents yesterday.

Earlier today, the local currency reached a three month high of 93.18 US cents, after stronger than expected Chinese industrial production and retail sales figures boosted confidence in the world's second largest economy.

Easy Forex currency dealer Tony Darvall said the fall of the Australian dollar mid-morning was surprising, as the Westpac Melbourne Institute Index of Consumer Sentiment showed consumer confidence was at a three year high.

"It's just profit taking for the time being and the market getting caught a little long above 93 US cents, but nothing serious, so we should see support stabilise around 92.80 cents," Mr Darvall said.

"Most people think there's a good chance we're going higher given the Syria risk reduction and the China improvement and the election risk over."

Meanwhile, Australian bond futures prices were lower.

The September 10-year bond futures contract was trading at 95.825 (implying a yield of 4.175 per cent), down from 95.875 (4.125 per cent) yesterday.

The September three-year bond futures contract was at 96.935 (3.065 per cent), down from 96.955 (3.045 per cent).

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